The Ministry of Justice has issued an impact assessment (www.justice.gov.uk/consultations/docs/ia-qualified-one-way-costs-shifting.pdf) in which they admit for the first time that they believe one way costs shifting will increase the number of claims made for compensation - and I quote 'It is assumed the proposal would increase the volume of cases pursued by claimants and this increase might be significant'.

This is obviously bad news for the defendant insurance industry with the ABI having already expressed their opposition to one-way costs shifting for this very reason.

It seems that we were therefore right all along if one way costs shifting is brought in (see http://www.aftertheeventinsuranceblog.co.uk/personal_injury_claims/lord-young-review-government). The increased number of claims will place a greater burden on defendants and will completely wipeout or even exceed the savings being proposed. It also seems that little research has been carried out of the impact of the changes and no systems are in place to monitor any changes once made.

This assessment clearly flies in the face of Lord Young's Health and Safety review - small businesses will be affected and the Daily Mail will have a field day.

Surely the Government are going to see sense and kick this part of the Jackson report into the dust?

Box Legal Limited: After the Event Insurance Providers
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